Get Started for Free Contexxia identifies hard-to-find pieces of information in SEC filings. No more highlighters, no more redlining, no more poring over huge documents. BODISEN BIOTECH, INC (1178552) 10-Q published on Sep 11, 2013 at 10:51 am
Reporting Period: Jun 29, 2013
The Company had a receivable due from a related party. As of June 30, 3013 and December 31, 2012, the amount due from a related party was $943,918 and $0, respectively. The amount due is unsecured, non-interest bearing and is repayable on demand.
General and Administrative Expenses: General and administrative expenses accounted for $1,098,398 of our operating expenses for the three months ended June 30, 2013, a decrease of $222,595 or 16.9%, compared to $1,320,993 for the three months ended June 30, 2012. The decrease is principally due to the increase in our bad debt allowance of account receivable balance of approximately $650,000 and a decrease in research and development expenses of approximately $960,000 during the three months ended June 30, 2013 compared to the three months ended June 30, 2012.
General and Administrative Expenses: General and administrative expenses accounted for $1,597,978 of our operating expenses for the six months ended June 30, 2013, a decrease of $541,624 or 25.3%, compared to $2,139,602 for the six months ended June 30, 2012. The decrease is principally due to the increase in our bad debt allowance of account receivable balance of approximately $685,000 and a decrease in research and development expenses of approximately$960,000 during the six months ended June 30, 2013 compared to the six months ended June 30, 2012.
Cash balance decreased to $145,309 as of June 30, 2013 as compared with $294,539 as of December 31, 2012 due to repayment of bank loan and advance to a related party during the period. As of June 30, 2013, the Company therefore maintained an inventory of finished goods of $1,003,436 in line with the Company’s budgeted sales for the first half of 2013. This has a negative impact on the cash balance. On March 19, 2013, the chairman issued an undertaking that the chairman will give his every endeavor and best effort to obtain necessary and adequate funding to meet the Company’s financial obligations as and when they are required thereby warranting that the manufacturing operations of the Company will not be affected.
Operating: We received $474,834 of cash for operating activities for the six months ended June 30, 2013 compared to cash used of $1,943,690 of cash used in operating activities for the six months ended June 30, 2012. The cash used in operating consisted of a net loss of $1,850,236 offset by non cash expenses of depreciation and amortization of $561,483, an increase in allowance for bad debts of $661,793, loss on disposal of equipment of $414,176 and due from a related party of $934,584 and a decrease in accounts receivable of $1,272,326 and inventory of $698,490.